Thursday, 27 February 2020

Jakarta Administration Cancels World Bank Loan

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  • Jakarta Deputy Governor Basuki

    Jakarta Deputy Governor Basuki "Ahok" Tjahaja Purnama. TEMPO/Subekti

    TEMPO.CO, Jakarta -The Jakarta Regional Government insisted on cancelling the Rp. 1.2 trillion (US$ 123,60 million) loan from World Bank. The loan was supposed to fund the Jakarta Emergency Dredging Initiative (JEDI) project to normale and rehabilitate 13 rivers and five reservoirs to to mitigate floods.

    "We already sent a letter to the Ministry of Public Works, we do not want to continue the loan from World Bank because it is difficult," said Jakarta's Deputy Governor Basuki Tjahaja Purnama at the Jakarta City Hall on Monday, April 22.

    Basuki informed that the project has already begun without using any of the World Bank funds. "Next year, we will allocate funds from our own budget again," he added.

    Basuki revealed that the terms proposed by World Bank are too difficult and complicated for a loan of only Rp 1.2 trillion with a five year term. That is why the Jakarta Administration has chosen to use the Regional Budget (APBD) for the projects.

    Basuki is certain that these projects will be completed on time by using funds from the regional budget. "The World Bank project will take five years. It will be done faster if we use our own budget, it’ll be complete in two or three years," he said optimistically.

    ANGGRITA DESYANI | RUCITRA DEASY FADILA